New Token Rating - Hooked Protocol

Hooked Protocol is a Web3 social network based on BNB Chain. It aims to create a community-driven ecosystem with learn-to-earn products and onboarding infrastructures to bring more people to Web3. The platform has two native assets, $HOOK, and $HGT. $HOOK is the platform's governance token, while $HGT is an in-ecosystem-only utility token.

Wild Cash is the first product of Hooked launched in 2022 Q3. It enables users to earn rewards and learn crypto information through simple operations such as Quiz-to-Earn, PoWT (Proof of Work and Time) Mining Game, etc.

TokenInsight gives Hooked Protocol a rating of CCC, with a positive outlook. It now ranks 15th among the game projects listed on our website.

Ecosystem Development

The DApp features a simple and easy-to-operate interface with the gamefied learning experience, which is quite user-friendly. Therefore, it attracts tons of users in a short timeframe.

Due to the statistics of DappRadar, the UAW (numbers of unique active wallets interacting with DApp's smart contracts) in the last 24 hours reached 406.43k (389.41k on average in the last 7 days). The total value locked in DApp's smart contracts is $113.18k.

As of Dec 2, 2022, Hooked has registered and operated the official accounts and community on Twitter, Telegram, Discord, and TikTok. The Twitter account has the most followers at 69,926.

Roadmap & Progress

The project has disclosed its roadmap from launch to 2023. The development plan for 2023 is relatively vague with no specific implementation details. As of Dec 2, Hooked has finished its seed round funding and IEO and launched the first App, Wild Cash. For the next half year, it will focus on product upgrading, collaboration, and wallet integration in 2023 H1.

Underlying Technology & Security

Hooked is going to build a Rollup layer as the scalability infrastructure of the ecosystem while consolidating assets and data with the ecosystem. The scaling solution has not been launched yet. But due to the disclosed roadmap, it is supposed to be released in 2022 Q4.

Apart from the Rollup, Hooked also plans to integrate onboarding infrastructures such as DID solution, built-in wallet, and graph interface, which are underdeveloped and are planned to be launched next year. The project is still at an early stage.

Notably, the project has not disclosed its codebase. And there has been no audit report issued yet. So the security of Hooked is unassessable for now.

Token Economics

Hooked Protocol has two native tokens. One is the governance token $HOOK. It can also be used as the Gas token on Hooked Rollup and for other privileges. The functions (e.g. Community and Rollup) that support $HOOK's value have not yet been implemented.

The total supply of $HOOK is capped at 500 million, of which 40% is allocated to private investors and the team, which is relatively concentrated. And these tokens will be unlocked from Jul 24, 2023, and will be fully unlocked until Oct 2029.

For the 20% of $HOOK allocated to private investors. Hooked Protocol announced two rounds of private token sales earlier this year, raising around $6m with FDV ranging from $30m to $60m. The main investors include Binance and Sequoia.

The second token is $HGT which can be earned by fulfilling in-app tasks with an infinite supply. The token is illiquidable until it is converted to uHGT (unlocked Hooked Gold Token). And the unlocking mechanism is determined by a bonding curve and the community. The $HGT's demand and value might depend on the user volume of the ecosystem, the token spending mechanism, and the bonding curve. But detailed information is not available at present.

Token Performance

$HOOK has been listed on 10 CEXs and Pancakeswap, and the main trading platform is Binance. The 24h trading volume of $HOOK is about $730 million.

As for the on-chain statistics, there are only 4 addresses holding the token with 14 on-chain transfers, which means the token is mainly traded on centralized exchanges.

Closing Thoughts

Hooked has attracted a lot of users in a short time due to its innovative learn-to-earn concept and easy-to-use product. It also has the potential to integrate with other projects such as DeFi and NFT. However, it has a great space for improvement in some aspects. First, the project is still at an early stage with part of the main infrastructure underdeveloped. Second, the functions that matter to the $HOOK token value are yet to be launched, such as the Rollup and community. And the token is primarily traded in limited CEXs and lacks on-chain activities. In addition, the project has not yet disclosed its code base, audit result, and detailed development plans which might influence the assessment of the project.

Based on the above information, TokenInsight gives Hooked Protocol a rating of CCC, with a positive outlook.